How to achieve financial freedom

What is benchmarking?

Think of some of your biggest dreams in life. You want to own a beautiful home. You want to provide for your family. You want to be able to travel the world and experience incredible adventures. What’s preventing you from doing these things?

More often than not, the answer is money. While you might be able to reach some of these goals as time goes on, to achieve them all while remaining in a good place money-wise, you need to establish financial freedom.

What is financial freedom?

Financial freedom is having the monetary stability to do what you want in life, without having to worry about your bank account. Financial freedom is being able to take that amazing trip to Tahiti without worrying about not coming into the office. It’s buying the house that your family dreams of and still having the funds to pursue your other interests.

Essentially, financial freedom is essential to living the life you’ve always dreamed of. Does this idea sound unattainable to you? Financial freedom is more realistic than you may think.

What’s your number?

The first step in developing a plan for financial freedom is thinking about your number. You know, the amount of money required to help you become financially free. There’s no magic number for everyone. There’s a certain amount of money that you could make that would enable you to live freely and pursue your passions. How much money is that? Write down a number that makes sense to you – it might seem large. Now, do some analysis. How much are you currently earning? What do you need to do differently to make this amount of money?

Achieving financial success

Now it’s time to find a way to make financial freedom a reality. Start by creating a money-making machine. You can do this by taking advantage of the power of compound interest. Divide your money into three imaginary buckets: security, risk/growth and dreams. Your security bucket is where all the money for your bills goes – you need this money to make your life function. Then, your risk/growth bucket is for things like high-yield bonds and stocks. Lastly, your dream bucket is money that you can have fun with. When you receive a bonus, or win a sum of money, it goes here.

By actively managing your finances and using the power of interest, you can one day achieve financial freedom. Financial freedom isn’t about being rich – it’s not about power or prestige – it’s about having the flexibility to make the most out of your life without relying on a job or paycheck.

Financial freedom is attainable, but you need to begin working toward it now.

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